June 27, 2006 at 08:30 AM EDT
Mustang Minerals Corp.: Maskwa Nickel Project Yields 13% Nickel Concentrate

Mustang Minerals Corp. (TSX VENTURE: MUM) today announced the results from batch flotation studies performed on a composite sample from the Maskwa Nickel Deposit. The report written by Frank Wright, P. Eng., reported that the preliminary test program produced a concentrate grade of 13% nickel with suggested nickel recoveries in the range of 80-85%. The report also concluded that "the composite tested responded well to flotation" and that "the preliminary test program suggests that a marketable nickel concentrate, with acceptable nickel recoveries, can be produced at Maskwa."

The flotation studies were performed for Mustang on a single composite sample, blended from 52 samples of split drill core sections, obtained from Maskwa. Laboratory studies were performed by Process Research Associates Ltd. (PRA) of Richmond BC under the direction of Mr. Frank Wright, P.Eng., along with chemical analyses performed by IPL Laboratories of Richmond BC. The purpose of the test program was to maximize nickel recoveries and to produce a nickel sulphide concentrate suitable for direct sale to smelters. The target was to produce a concentrate of greater than 10% nickel and less than 4% Mg. Flotation cleaning procedures were performed which addressed the issue of the relatively high levels of talc present in the feed. The optimized results exceeded the desired target parameters and provided concentrate grades of approximately 13% nickel with a low Mg ranging from 1.5% to 4%. Optimized recoveries on these tests were in the 80-85% range. Other potential credits in the concentrate graded approximately 3% copper, 0.4% cobalt, 15 g/t palladium and 1.5 g/t platinum.

The report concluded further work is warranted and that preliminary results need to be confirmed by locked cycle testing with further studies for variability analysis and to process optimization.

The Maskwa Nickel Deposit contains a NI 43-101 compliant Indicated and Inferred Nickel Resource Estimate completed in February 2005 by Roscoe Postle Associates (RPA). The resource contains 78,750,000 pounds of nickel and 17,060,000 pounds of copper (5,230,000 tonnes at 0.68% nickel and 0.15% copper) in the Indicated Open Pit mineralization. The Indicated Underground Resource is estimated at 790,000 tonnes at 1.11% nickel and 0.14% copper containing 19,310,000 pounds of nickel and 2,460,000 pounds of copper.

"The positive results of these significantly improved preliminary metallurgical tests is an important step forward as we look to develop the nickel resource at Maskwa" said Robin Dunbar, President of Mustang.

Mustang controls the Maskwa Nickel Project and an extensive and prospective land position in the Bird River Greenstone Belt. Currently Mustang has engaged RPA to complete a resource estimate (the second in the project area) at the M2 Zone of the Mayville Property located 35km to the north of Maskwa on the North arm of the Bird River Greenstone Belt.

Peter Wood, P. Eng., is the Qualified Person for Mustang Minerals Corp. for the purpose of National Instrument 43-101 and has reviewed the contents of this release.

Certain information regarding the Company contained herein may constitute forward-looking statements under applicable securities laws. Such statements are subject to known or unknown risks and uncertainties that may cause actual results to differ materially from those anticipated or implied in the forward-looking statements. The securities being offered have not and will not be registered in the United States under the United States Securities Act of 1933, as amended (the "1933 Act") or any state securities laws, and may not be offered or sold within the United States or to or for the account of benefit of U.S. persons absent U.S. registration or an applicable exemption from U.S. registration requirements. This news release does not constitute an offer to sell or a solicitation of an offer to purchase securities in the United States.

To find out more about Mustang Minerals Corp. (TSX-V: MUM) visit our website at www.mustangminerals.com.

Shares Outstanding: 52,600,186



The TSX Venture Exchange has not reviewed and does not accept responsibility for the contents of this press release.


Contacts:
Mustang Minerals Corp.
David Black
Investor Relations
(416) 955-4773
info@mustangminerals.com
www.mustangminerals.com

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